Low-cost airlines bring obvious benefits to the country that hosts them. Its economy benefits as the flow of tourists grows and competition between local airlines intensifies.
Irish low-cost carrier Ryanair, the largest in Europe, launched its first routes in Ukraine in 2018 and currently operates from five airports — Kyiv, Odesa, Kharkiv, Kherson and Lviv.
According to its СEO, Michael O’Leary, the carrier wants to expand its presence in Ukraine as there are over 12 suitable airports for Ryanair in the country.
But for the Irish carrier to become a major investor in Ukraine, just as in the case of Poland, the Ukrainian government has to sign the aviation agreement called Open Skies, O’Leary said during Ryanair’s annual meeting in Dublin on Sept. 16, Reuters reports.
This agreement will allow Ukrainian and European low-cost airlines to fly above Ukraine and Europe without restrictions. Currently, airlines need the approval of the government to start a flight. This process is time-consuming and bureaucratic, experts said.
Under the Open Skies agreement, foreign airlines could fly between Ukrainian cities and schedule as many flights as they like. Ukrainian airlines, in turn, could fly between European airports, but would have to start and finish their flights in Ukraine.
Earlier in June, the Council of the European Union has allowed Ukraine, Armenia, Tunisia, and Qatar to adhere to the Open Skies agreement with the EU. O’Leary expects that Ukraine’s government could sign it before the end of the year.
According to O’Leary, Ryanair will profit from Ukraine’s migrant workers traveling to Poland, Finland, the Czech Republic and Germany.
In 2019, more than three million Ukrainians were legally working abroad but the number can swell to 9 million during the harvest season. Ukrainian seasonal workers usually travel by bus or by plane and choose those carriers that offer lower prices. O’Leary said that Ryanair’s fares currently average around 40 euros per flight.
Unlike the rest of Europe, Ukraine and other Eastern European countries had protectionist aviation policies. Ryanair, for instance, had tried to enter Ukraine since 2013, but it wasn’t easy.
The country’s flagship carrier Ukrainian International Airlines (UIA) had allegedly blocked Ryanair’s entry into the market to protect its own interests.
“Why is it so hard for Ryanair to come to Ukraine? My response – Ukrainian oligarchs are inviable on the competitive market and are scared of any hint of free competition,” former Infrastructure Minister Volodymyr Omelyan said back in 2017.
Ukrainian oligarch Igor Kolomoisky is known to have a significant stake in the UIA.
Last year was difficult for the UIA. As the countries closed their borders amid the quarantine restrictions, Ukraine’s flagship carrier cut 72% of its flights, losing $157 million in January-September 2020.
Apart from the UIA, Ukrainians use other local airlines — Azur Air, SkyUp, Windrose, and Bees Airline. Among the popular foreign low-cost carriers that now fly to Ukraine are Ryanair, Hungarian WizzAir and Saudi Arabia’s Flynas.
